City Council shocked by water, sewer rate hikes

Thursday

Oak Ridge City Council members expressed shock at the city's proposed water and wastewater rate increases after seeing how the new rates compare to other nearby cities.

Oak Ridge City Council members expressed shock at the city's proposed water and wastewater rate increases after seeing how the new rates compare to other nearby cities.

In a Monday night work session, Electric Department Director Jack Suggs presented several graphs that showed cost increases for water and sewer for both residential and commercial customers. The graphs showed the rate comparison for the current charge, the new charge (proposed for April 1) and a new charge to go into effect January 2013.

At its regular March meeting, Council postponed the second reading of an ordinance to increase water and wastewater rates to instead consider a substitution amendment that would delay the rate increases for a year.

The two-phase rate increase would have gone into effect April 1 and Jan. 1, 2013. The two-phase modification would delay the full impact of the rate increase for a year.

Suggs prepared the new rate study to show those increases. Council had asked for the study after learning many commercial customers received detailed letters showing their company's proposed new rate and in some cases their rates had tripled.

The proposed rate increases are to pay for improvements to the water and wastewater system by 2015. The improvements are being forced on the city by the Environmental Protection Agency.

After seeing the charts that show Oak Ridge having higher rates than some nearby cities, including Knoxville, Council member Chuck Hope said, "We're not going to be competitive (in recruiting new business). We already have high taxes and now we're going to have the highest water rate. This puts us in a hole."

"It's clear these rates are about to level us," Council member David Mosby said. "This will be devastating to the community. Now is the time to ask for an extension (in the EPA mandate)."

Hope agreed, stating because the city and nation is coping with poor economic times, the city should take Suggs' charts to the EPA.

"I couldn't agree more," said Council member Charlie Hensley, who also said the Department of Energy "doesn't pay their fair share," and it would be "wrong not to make our case instead of just lying back and taking it."

Council member Ellen Smith said Oak Ridge is being "punished" because the city is not under a "compliance schedule."

"What I'm hearing is that we need to revisit the issue with the EPA," Mayor Tom Beehan said. "I don't know how realistic that is."